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Zillow put theaverage U.S. home valueat $362,481, a 3.3% increase over the past year.
Its not just home prices that make it so hard to afford real estate.
Interest Rates Could Come Down
Housing interest rates play a crucial role in housing affordability.
Its also about half a percentage point lower than it was 12 months ago.
Assuming this trend continues, buyers could get lower rates by waiting until next year to buy a home.
If rates continue to drop, current homeowners who want to sell their property could also benefit.
The greater the demand and the lower the supply, themore expensive homestend to be.
But the inverse is also true.
With housing inventory rising throughout 2024, well likely see prices start to decline in 2025.
As more homes hit the market and outpace buyer demand, sellers will have to lower their asking prices.
This means more options for buyers andincreased negotiating power.
Sellers will be more inclined to accept lower offers in a market flooded with choices.
Things like interest rates, economic stability, housing prices, and inventory can fluctuate all the time.
Theres no surefire way to predict whatll happen going forward.
Once youve gotten to this point, you could be ready to buy a house.
You could also potentially set aside more money for a down payment.
Plus, with a fully maxed-out emergency fund, youll be prepared formost financial uncertaintiesthat come your way.
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